An Integrated Approach to the Determination of Wages of Bank Employees

Abstract

Subject. The author examines the approaches to determination of wages of the bank employee on the basis of two indicators: the development strategy of the organization and data of consultancy reports on wage bank workers on the labour market. Purpose. Present the algorithm of calculation of wages and ranking positions of bank employees on the market of wages incorporating an integrated approach with use of surveys of consulting companies. Methodology. The division of market salary surveys consulting firms of 2 types: generic and boutique. Description of performance surveys. Generic surveys are more affordable for buyers; the vast majority of organizations that are major participants in the labour market buy and use them, since those surveys contain data on wages for typical positions / functions by sectors of the economy and jobs in the regions. Boutique surveys — more expensive — usually bought large organizations as a complement to generic, to fit their more specific requirements (the study of methods of calculating premiums, KPIs, structure, income, market rate salaries for rare, non-standard positions on the national and international labour markets). We highlight requirements without which we cannot use surveys of both types for management of employees’ remuneration: the relevance of the analyzed labour market; a high degree of coincidence of the estimated market specification of the position within an organization; precision, representativeness of the data. We define also the procedure of comparison of posts within an organization with the market ones: first we use generic surveys, then, after identifying the lack of data — we use data of boutique surveys ordered by organizations. Result. We analyzed the mechanisms of mapping estimated positions in the banking sector with market data, the impact of macroeconomic indicators on the positioning of the employer at the market of wages, and the types of studies that can provide generic and boutique surveys of wages. Conclusions. The integrated approach that was used to calculate the wages of employees of the bank employees taking into account the proposed comparison algorithm with market data on wages submitted by the consulting companies, may potentially contribute to improving the competitiveness of HR-brand of the organization and optimize the size of the wage fund.